Banks in Japan with cryptocurrency plans
One of the biggest banks in Japan that goes by the name Mitsubishi UFJ Financial Group bank of Tokyo-Mitsubishi UFJ (MUFG) is preparing for the launch of its in-house digital currency, MUFG coin which is slated for a release in the turn of 2019.
There have been months of speculation on the proposed release date of this Japanese bank’s Coin, the MUFG coin, which is one of the largest banks in Japan. The Mitsubishi UFJ Financial Group Inc. bank has finally announced the release of its upcoming and long-awaited digital currency.
According to reports coming from Japan Times, the Group President, Mike Kanetsugu revealed that the firm intends to release the MUFG Coin before the end of 2019.
Kanetsugu thinks that the MUFG coin will be leaning towards businesses alongside retail outlets and restaurants in order to adopt the Coin quickly as the Bank intends on achieving widespread adoption and will connect the economy seamlessly with others.
The implementation of the MUFG Coin will also enable the bank to participate in various businesses in order to find out any previously unavailable information about their customers and be able to serve them better.
The point of the MUFG Coin
MUFJ is as of 2018, the 5th largest bank in the world and has made an announcement about its plan to release its own coin in order to solve a number of operational issues within the bank.
The development of the MUFG Coin involves the procurement, storing and transport of physical cash and banknotes as this type of activity is becoming increasingly unsustainable in Japan as the country is notorious for its cash economy.
The MUFG Coin will be fundamentally different from the JPM Coin, as it will be focused on how Japanese consumers interact with money. Kanetsugu has expressed his full confidence in the ability of this digital currency for the coming years.
The Country is seeking to modify consumers behaviour and habits away from cash before the Tokyo 2020 Olympics. This digital currency will have the ability to cut costs associated with physical currencies and incorporate a number of new abilities.
According to Kanetsugu, the sheer weight of the MUFJ financial infrastructure will be enough to persuade businesses to adopt the Coin.
Experimentation with DLT applications
A test was ran by the Bank back in September of 2018 with a convenience store and it was recorded as a success. The financial institution later indicated that the MUFG Coin will have the ability to do instantaneous transfers as well as the ability to processes micro-payments in decimal value increments just like other cryptocurrencies and blockchain assets.
This bank backed digital currency will also be integrated with the MUFJ bank’s new mobile applications, which will allow users to manage their credit cards in one place. The app will manage reward points and services as well as performing a variety of management functions.
Developing the MUFG Coin is in line with building an organisation that can be relied on and trusted globally, along with real innovation. Some other banks that are also looking to issue its own digital currency in the future using the Distributed Ledger Technology.
Most are already in development with the world waiting to see if a successful mainstream digital currency, operating with full support of the existing financial system and regulations will work in the longterm.